CASH COW

[jaybird249]

WOLV DD:
NetWolves Corporation (WOLV) provides network security solutions coupled with network management and communication services worldwide. It operates in three segments: Voice Services, Managed Service Charges, and Equipment and Consulting.
WOLV met all NASDAQ requirements except the bid price, so was delisted on May 16, 2006. WOLV expects to trade on the OTC BB shortly.

WOLV is a turnaround story. After losing its major customer, Swift, WOLV took quick action to slash costs and diversify its customer base. The end result is that WOLV is now a more diversified, streamlined company than ever. With nearly $2 MM in annual cost reductions, WOLV turned cash flow positive in March 2006:
http://biz.yahoo.com/bw/060222/20060222006065.html?.v=1
It is interesting to note that the last time WOLV was cash flow positive, in early 2005, the share price exceeded $1.

The third quarter 2006 financials show WOLV is on the road to sustained cash flow and profitability. Costs were reduced by 27%, and net loss was reduced by 40% to $486,000. If depreciation and amortization are added back, WOLV was essentially cash flow breakeven for the entire quarter, but as noted, turned the corner to positive cash flow in March 2006.
http://biz.yahoo.com/bw/060518/20060518005875.html?.v=1

As of May 19,2006, WOLV has a market capitalization of $7.5 million and a Price/Sales rato of 0.3. This is a significant discount to the Industry average Price/Sales ratio of 2.6:
http://finance.yahoo.com/q/co?s=WGRD

WOLV has many large Fortune 500 clients including General Electric and McLane, a wholly owned subsidiary of Berkshire Hathaway Inc. WOLV has significantly increased its sales pipeline and diversified its customer base through a new marketing strategy that increases the company's sales reach:
http://www.thechannelinsider.com/article2/0,1895,1928373,00.asp

WOLV also provides VOIP services. With the Vonage IPO in May, WOLV could benefot from the interest in the sector.

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OS AND FLOAT
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As of 05/19/2006:

31,774,479 shares outstanding and approximately 27.4 million float. WOLV management owns 6,895,000 shares.

On conclusion, WOLV represents a compelling investment opportunity: A cash flow positive stock with GAAP profitability in sight with a relatively low share count trading at a huge discount to its peers.